DEVELOPMENT COMMUNICATION TRUST,ASSAM vs. WARD 2(3) EXEMP., GUWAHATI, GUWAHATI

PDF · subscribers
ITA 101/GTY/2026Status: DisposedITAT Guwahati24 April 20265 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found it imperative in the interest of justice to grant the assessee one more opportunity to submit its response to the notice. The order of the CIT(Exemption) was set aside, and the matter was remanded for fresh consideration.

What were the facts?

The assessee trust applied for registration under Section 12A(1)(ac)(ii). The CIT(Exemption) rejected the application due to the absence of a dissolution clause and unverified cash deposits, stating the genuineness of activities was not established. The assessee claimed a second notice was not received and requested another opportunity.

What were the issues?

Whether the rejection of the Section 12A registration application was justified due to non-compliance with notices and lack of a dissolution clause, and if a further opportunity should be granted.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, GUWAHATI ‘DB’ BENCH AT KOLKATA

Before: SHRI SONJOY SARMA & SHRI RAKESH MISHRA

PER RAKESH MISHRA, ACCOUNTANT MEMBER:

This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Exemption)-Kolkata [hereinafter referred to as Ld. 'CIT(Exemption)'] passed in respect of registration u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 28.12.2025. 2. The assessee is in appeal before the Tribunal raising the following grounds of appeal:

“1. For that the hurriedly passed Section 12A rejection order is liable to be struck down, as ample and adequate opportunity of being heard was not provided to the Appellant, despite there being sufficient time left in the hands of the Ld. CIT (Exemp.), Kolkata for disposal of the Section 12A renewal registration application which was actually to be dealt by the Ld. CIT (Exemp.), Kolkata on or before 31.12.2025. Development Communication Trust.

2.

For that the Appellant never received notice dated 08.12.2025 reply whereof was due to be given on 12.12.2025. Hence due to non-receipt of notice, the Appellant could not provide the relevant information as asked for by the Ld. CIT (Exemp.), Kolkata. '

3.

For that the Ld. CIT (Exemp.), Kolkata ought to have issued another Notice, for the reason of non receipt of response. Further following the cardinal principles of natural justice, as because sufficient time was available in his hands to dispose the renewal application and for his omission to issue notice again, the appellant is faced with unjust rejection of Section 12A renewal.

4.

For that the absence of dissolution clause in appellant Trust Deed was never insisted nor enquired about, ever since it was granted registration u/s.12A in 2011, and there being no change in the requirements for grant of registration u/s.12A post 2011, the absence of dissolution clause should not have been the reason of denial of renewal of registration.

5.

For that reasonable care was not accorded in handling the Section 12A renewal application of the Appellant and that the impugned Notice dated 08.12.2025 was issued as a ritual, as few data being sought for in the Notice was already provided by the Appellant in response of 1st notice.

6.

For that in view of facts and circumstances of the case, a matter as serious as cancellation of registration, was carried out in a routine manner, devoid and in complete oblivion of the situation that the Appellant has to face for such unjust rejection and without considering the impact on the appellant for financial burden, genuine hardship and setback to all the ongoing genuine charitable activities. The Appellant Trust craves leave to add, amend, alter and / or withdraw all or any of the Grounds of Appeal herein and to submit such statements, documents and papers as may be considered necessary either at or before the appeal hearing.”

3.

Brief facts of the case are that the assessee had filed an application on 02.06.2025 for registration u/s 12A(1)(ac)(ii) of the Act in Form No. 10AB. Accordingly, vide notice dated 10.10.2025 certain information was sought from the assessee by fixing the date for furnishing the reply on or before 17.10.2025. In response to which the assessee submitted various details along with supporting documents on 01.11.2025. The Ld. CIT (Exemption) perused the submission of the assessee and noted that there is no ‘dissolution clause’ in the Trust Development Communication Trust. Deed, which is mandatory for a public charitable Trust for deciding the manner of distribution of assets/funds in the event of dissolution. The assessee was required to furnish the details of donations received and given for the last three years and the details of the members of the Society along with their identity proof. The Ld. CIT (Exemption) noticed from the bank account statement maintained with SBI bank that large amounts of cash had been deposited on multiple occasions for which no documents/details had been submitted by the assessee. Since no reply had been received from the assessee, hence the genuineness of the activities of the Trust was not established and thus the trust was not eligible for registration u/s 12A(1)(ac)(ii) of the Act had in the view of the Ld. CIT(E). Hence, the application filed by the assessee was treated as non-maintainable and the assessee’s application was rejected.

4.

Aggrieved with the order of the Ld. CIT (Exemption), the assessee has filed the appeal before the Tribunal. It was stated by the Ld. AR that the assessee is a Trust and the first notice issued by the Ld. CIT (Exemption) was complied with while the second notice was not received and therefore, it could not be complied with. The Trust is stated to run a school in a village for lower academic classes. The Trust was granted registration on 01.04.2011 which was valid till AY 2026-27. The second notice dated 08.12.2025 was not complied with and therefore, the application for registration was rejected. It was requested that one more opportunity may be provided to file the relevant details before the Ld. CIT (Exemption).

Development Communication Trust.

5.

The Ld. DR, though did not raise any serious objection to this request, but vehemently argued that the order of the Ld. CIT (Exemption) may be confirmed.

6.

We have heard the rival contentions and have also gone through the facts of the case. In the interest of justice and fair play and on the facts of the case, it was considered imperative that the assessee may be granted one more opportunity to file its submission in response to the notice issued by the Ld. CIT (Exemption) for justifying the genuineness of the activities and other details for the required approval under the Act. Hence, the order of the Ld. CIT (Exemption) is hereby set aside and the matter is remanded to him for deciding the application afresh after granting an opportunity of being heard to the assessee and thereafter to consider the application in accordance with law. For statistical purposes, all the grounds of appeal are partly allowed.

7.

In the result, this appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 24th April, 2026. [Sonjoy Sarma] [Rakesh Mishra] Judicial Member Accountant Member Dated: 24.04.2026 Bidhan (Sr. P.S.)

Development Communication Trust. Copy of the order forwarded to:

1.

Development Communication Trust, Kardoitola, Barbari Barbhag, Nalbari 781351, Nalbari, Assam, 781351. 2. ITO, Ward-2(3) Exemp., Guwahati.

3.

CIT(A)-

4.

CIT-

5.

CIT(DR), Guwahati Benches, Guwahati.

6.

Guard File. //// By order

More judgments on Section 12A(1)(ac)(ii)

All 679 judgments and leading authorities on Section 12A(1)(ac)(ii) →

Recent GST High Court judgments

Search GST case law →